$8\mathrm{.}3$ Other Valuation Approaches

What is the expected result of an order where the price is determined at shipment and is subject to cancellation?

The buyer does not need to record the purchase commitment or disclose it in a note to the financial statements.

The buyer does not need to record the purchase commitment but should disclose it in a note to the financial statements.

The buyer needs to record the purchase commitment and write an explanatory note to go along with the financial

statements.

The buyer does not need to record the purchase commitment and only needs to disclose it in a note to the financial

statements if debt financing will be used for the purchase.